I looked into this y'day and this is probably a wont-fix. It is an edge case because of mismatched tags and getting rid of the mismatched closing </div> tag would take care of it.

In the wt->html direction, the list handler terminates the list item at the </div> since there could have been an opening <div> earlier on the page. Tag matching happens much later after the DOM is built and by then it is too late to backtrack and fix the list item parse.